FHA Loans
A good fit for many first time buyers, as well as some who have had credit issues in the past.
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Down payments as low as 3.5%
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Purchase loans available only for a primary residence
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Shorter waiting periods than Conventional Loans after Short-Sale, Bankruptcy or Foreclosure
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Fixed rate and Adjustable Rate Mortgage (ARM) options available
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Refinances also available
What are FHA Down Payment Requirements?
For Purchase transactions, FHA Loans require you to put down at least 3.5% of the purchase price of the home. For a Refinance transaction, the equity required varies depending on if you are taking additional cash out of your home. Refinances without additional cash require 2.25% or more in equity. If you are seeking a cash-out refinance, you will need at least 15% equity.
What types of property are eligible?
FHA loan programs allow you to purchase or refinance single-family homes, FHA Approved condos, planned unit developments, certain manufactured housing and 1-4 family residences. FHA does require that the homes meet certain minimum health and safety standards. If the property does not currently meet the standards, FHA offers the 203(k) program to finance improvements to the property.
Does my credit have to be perfect?
Your credit rating should be good, but does not need to be perfect. If you have had late payments, a short-sale, bankruptcy or foreclosure, you may be eligible if enough time has elapsed since those events, and you have re-established good credit.